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Peak Oil means the notion of "peak oil" was developed by an American geophysicist in the 1960s. It refers to the time in which the extraction of oil around the world is estimated to be at its highest.
After the point of peak production the amount of oil being extracted is expected to decline, and this in turn pushes up the price.
Peak oil theory is based on a series of estimates and assumptions relating to the current level of oil reserves, the amount of oil which will be discovered in the future, the increasing demand for oil, and the increasing use and application of technology.
Contention surrounds the date at which the world reached (or will reach) peak oil. Initial estimates made in 1971 suggested global oil production would peak between 1995 and 2000. More recently the Association for the Study of Peak Oil and Gas placed peak oil at around 2008.